Hertz Files for Bankruptcy Protection Due to Coronavirus
Due to the sudden economic downturn caused by the coronavirus pandemic, Hertz recently announced that it filed for bankruptcy. The company was financially strong and growing prior to the COVID-19 pandemic, but the sudden decline in travel caused a dramatic reduction in the company’s revenue and future bookings.
By declaring bankruptcy, Hertz intends to continue operations while restructuring its debts and emerging in better financial health. Hertz President and CEO Paul Stone said in a statement,
Hertz has over a century of industry leadership and we entered 2020 with strong revenue and earnings momentum. With the severity of the COVID-19 impact on our business, and the uncertainty of when travel and the economy will rebound, we need to take further steps to weather a potentially prolonged recovery.
All of Hertz’s businesses including Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries will continue serving customers during the company’s bankruptcy proceedings.
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Hertz’s reservations, promotional offers, vouchers, and customer loyalty programs are expected to be unaffected.
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